July 30, 2016
Nobody ever lost money taking a profit. – Bernard Baruch
ROI. ROCE. ROIT. ROTC. While a plethora of financial calculations exist that allow companies to measure the effectiveness of spend, a key mantra holds true across all: recognizing and ensuring that any investment made should result in increased profitability, both overall and relative to other opportunities that exist.
According to Constellation Research, more than half of the companies in the Fortune 500 (as of 2000), have gone bankrupt, been acquired or ceased to exist. As markets continue to change and competition continues to increase, the environment for companies to accelerate growth and remain profitable has become increasingly difficult. This is particularly prevalent in the FinTech industry.
The FinTech industry is currently in an arms race where companies are required to develop not only the best products and services but faster and more reliably than their competitors. Failure to win or even keep up in this arms race comes with drastic, negative consequences. That kind of pressure can lead to corporate distraction, as companies chase ‘the next big thing’ or ...